WHAT IS A NEW BUILD MORTGAGE?
A new build mortgage is a special loan specifically for buying newly developed houses. The mortgages also consider specific factors of new builds, such as prolonged construction and value changes of the properties in the course of construction. You can approach an honest new build mortgage advisor in Birmingham to ease the process.
An experienced new build mortgage broker assists in matching you to the appropriate lender in the initial stages, which could give you the maximum chance of being approved, without undergoing credit checks.
Key Features of New Build Mortgages in birmingham
If you're planning to buy a newly constructed property, here are some important features of New Build Mortgages in Birmingham you should know:
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Higher Deposit Requirements: New construction homes also tend to have higher loan-to-value restrictions. You could be required to put down 15%–25% in cash, particularly for apartments, which is higher than typical mortgages.
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Builder Incentives: Developers might offer incentives like free legal fees or kitchen upgrades. Lenders may factor these in when calculating the actual loan amount available.
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Long Mortgage Offers: With build times often delayed, many lenders offer extended mortgage validity, sometimes for up to 12 months, giving you more flexibility to complete the deal.
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Support Schemes & Assistance: Though Help to Buy ended in 2023, schemes like Deposit Unlock are still helping first-timers. You can speak to a new-build mortgage advisor to take you through your options.
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Valuation Adjustments: Mortgage lenders are also wary of valuations for new constructions for the "new build premium." It impacts borrowing allowance and future resale value.
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Specialist Lenders Available: A good new build mortgage broker can connect you with lenders who specialise in new properties. These lenders often offer better rates and flexible criteria.
tips for New Build Mortgages in birmingham
When it comes to securing a new build mortgage in Birmingham, I've found that preparation and timing make all the difference. Here are a few essential tips I always share with my clients:
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Research Developers: I always advise choosing reputable developers who have a strong track record of delivering projects on time and to a high standard. This reduces the chances of delays and ensures your investment is in safe hands
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Understand Mortgage Terms: One thing I make sure of with every client is clarity on how long the mortgage offer stands. Since new builds can come with construction delays, knowing whether your mortgage offer allows for extra time is key to avoiding hiccups.
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Consider Market Timing: Early bird discounts might look tempting, but I help you weigh them carefully. I look at market trends to help you decide whether it’s worth jumping in early or waiting for a better opportunity.
As an independent new build mortgage advisor in Birmingham, I understand how personal this decision is. That’s why I tailor my advice to each client’s unique circumstances, comparing lenders and offers that fit their goals, not just the mainstream deals.
How much deposit do i need for a new build mortgage?
If you’re buying a new build property, lenders often ask for a higher deposit compared to older homes, mainly due to perceived risks during construction.
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For new build houses, lenders typically expect a 15% deposit (that’s 85% LTV).
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For new build flats, the deposit is often around 25% (or 75% LTV).
As a new build mortgage advisor in Birmingham, I help you understand these differences and find a lender that fits your budget and timeline.